How do families make effective wealth decisions?

Defining the purpose, process and perspective of family wealth

Start here

Family wealth decisions are often difficult. Through this paper we seek to help individuals and families enhance their own abilities to successfully navigate their decision-making. These three questions are the backbone of developing structure in your family, and the backbone of this paper.
a tack with a large, flat head, designed to be placed into a board or other fairly soft object or surface by the pressure of the thumb.

Purpose

What is the core purpose of our wealth?
circular arrow pointing right.

Process

How might we foster a culture of lifelong learning for our family?
gridline version of the globe.

Perspective

What steps can we take to develop the qualities and skills we want?

Patricia and Michael Parker1 spent decades building their family business by taking risks, pushing for strategic growth, and relying on instinct and hard-earned experience in their field. But when their children became teenagers, they began to feel out of their element when it came to managing their personal wealth and discussing it with their family. The mentality that allowed them to build wealth was not the same mentality that would preserve their wealth—or even effectively pass it down. They quickly found supporting family members in building financial knowledge and skills was not the same as running a successful business.

Our goal is to support wealthy families and their advisors to make more effective decisions around wealth. To do so, we combine three elements:

  • Our research
  • Findings from the field of behavioral economics2
  • Our experience in working with families like the Parkers

In this whitepaper, we’ll lay out the changes a family such as the Parkers would make to actively develop their family culture to work with the opportunities and challenges that managing wealth brings—both for wealth creators and the rising generations.

Read the full paper to discover all of the tools and guidance we provide to help families make effective wealth decisions, including a clear and concise decision making plan, and an in depth look at the difficult topics surrounding wealth decisions, such as:

  • Outcomes Far in the Future
  • The Need for Discussion Around Decisions
  • Thinking About How We Make Family Wealth Decisions
  • Learning (and Refining ) by Doing

 

Read The Full Whitepaper

1 The Parker family represents a compilation family drawing directly from our experience, with identifying details changed to preserve confidentiality.

2 Behavioral economics combines the disciplines of psychology and economics to explain why we don't always make rational economic decisions. The field identifies and examines the biases that influence our actions, and offers insights to encourage people to make better informed decisions.

 

Related Content:

1 of 1

Investing involves risk. There is always the potential of losing money when you invest in securities.

Asset allocation, diversification and rebalancing do not ensure a profit or protect against loss in declining markets.

Merrill, its affiliates, and financial advisors do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

This material is not intended as a recommendation, offer or solicitation for the purchase or sale of any security or investment strategy. Merrill offers a broad range of brokerage, investment advisory (including financial planning) and other services. Additional information is available in our Client Relationship Summary. 

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”).  MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC and a wholly owned subsidiary of BofA Corp.

Merrill Private Wealth Management is a division of MLPF&S that offers a broad array of personalized wealth management products and services. Both brokerage and investment advisory services (including financial planning) are offered by the Private Wealth Advisors through MLPF&S. The nature and degree of advice and assistance provided, the fees charged, and client rights and Merrill’s obligations will differ among these services. Investments involve risk, including the possible loss of principal investment.

The banking, credit and trust services sold by the Private Wealth Advisors are offered by licensed banks and trust companies, including Bank of America, N.A., Member FDIC, and other affiliated banks.

Trust, fiduciary and investment management services are provided by Bank of America, N.A. and its agents, Member FDIC, or U.S. Trust Company of Delaware. Both are wholly-owned subsidiaries of Bank of America Corporation.

Insurance and annuity products are offered through Merrill Lynch Life Agency Inc., a licensed insurance agency and wholly owned subsidiary of Bank of America Corporation.

Investment, insurance and annuity products:

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value
Are Not Deposits Are Not Insured by Any Federal Government Agency Are Not a Condition to Any Banking Service or Activity

© Bank of America Corporation. All rights reserved.

3642532 -EXP-2022-06-24

Close

Important notice: you are now leaving Merrill Private Wealth Management (MPWM).

Clicking CONTINUE will take you to a website that Merrill Private Wealth Management is not affiliated with and may offer a different privacy policy and level of security. We are not responsible for and do not endorse, guarantee or monitor content, availability, viewpoints, products or services that are offered on other websites. Clicking RETURN TO MPWM will take you back to the previous page.

CONTINUE RETURN TO MPWM